Stock rose on Wednesday after Morgan Stanley said it will sell a stake to a China firm, while the Federal Reserve said it would lend $20 billion to banks to improve market liquidity.

The Fed said that it received requests for $61.1 billion in loans from 93 bidders, showing a strong demand by banks that need short-term funds. The winning bidders will receive their loans, which will mature in 28 days, on Thursday.

Morgan Stanley shares jumped 4.8 percent to $50.31 after it announced investment activity from a Chinese government-controlled investment vehicle, China Investment Corp. The group plans to buy a for $5.7 billion stake in the U.S firm.

On Wednesday open, the Dow Jones industrial average was up 36.42 points, or 0.28 percent, at 13,268.89. The Standard & Poor's 500 Index was up 5.60 points, or 0.38 percent, at 1,460.58.

The Nasdaq Composite Index was up 7.82 points, or 0.30 percent, at 2,603.85.